Could you please post a few photos of your tree with clear, close-ups of the white stuff? This would be a huge help in identifying the problem. It would also be helpful to know: What is the texture of the white stuff? What type of tree is it? How long have you had the tree? Are the leaves yellowing or falling off? What type of soil is it in? How often are you watering? What kind of light does it get?

The white stuff doesn't sound good. It could be mold, mineral scale build-up if you have hard water from a well or some other disease. Don't panic tho...yes, it needs to addressed as soon as possible however, there are lots of great people here to help.

I have the tree exposed to partial sunlight, i water it roughly every 2 to 3 days, and it does not have any other discoloration. I dug it up from my back yard two months ago and it has had quite a lot of growth since then.

the white powder on the trunkis not able to be brushed off and feels like it is part of the bark. it has only recently happened but it looks like it is close to the water level when i do water the plant.

anny help would be greatly appreciated!

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look like normal scale to me. Do you use (hard) tap or ground water? If possible, use rain water. Also: You seem to have the plant indoors. Why not place it outdoors. If it came from your garden, it is not a tropical plant, is it.